### United States

Department of Agriculture Animal and Plant Health Inspection Service Septem ber 2012 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Entitie s**  **Interim Rule**  **APHIS -**  **20 12**  **- 00**  **79**
**Golden Nematode; Removal of Regulated**  **Areas in Livingston and Steuben Counties,**  **New York**

Policy & Program Development Policy Analysis & Developmenti

**Summary** This rule codifies a Federal Order issued in February 20 12, removing certain areas in Livingston and Steuben c ounties in the State of New York from the golden nematode (GN) domestic quarantine regulation in §301.85, thereby reducing the GN regulated area by a total of 262,847 acres. GN is a major pest of potat o plant s and also attacks eggplant , tomato plants , and soy beans , among other crops

. The GN quarantine negativel y affect s the sales of these agricultural commodities , and the operations of non

- agricultural businesses that use earth

moving equipment as well

. The pest is spread b y the transport of cy sts in soil, in particular through the inadvertent movement of infested soil attached to agricultural products, farming equipment, and other regulated articles. In 2007, there were 38 farms that harvested potatoe s in these two New York c ounties , 10 farms in Livingston County and 28 farms in Steuben County

. These 38 farms represented about 4.4 percent of potato farms in the State of New York . New York farms that harvested potatoes in 2007 represented about 6 percent of such farms in the United States and planted about 2 percent of the Nation’s acres from which potatoes were harvested. Affected entities will benefit from no longer needing to satisfy compliance requirements of the quarantine. They may also find improved export opportunities. While the potato farms in the two c ounties qualify

as small entities, they

are few in number and their share of the Nation’s potato industry

is small. The APHI S Administrator has determined that the action will not have a signi ficant economic impact on a substantial number of small entities.1



### Introduction This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the interim rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. In February 2012, APHIS issued a Federal Order to terminate the designation of certain areas in Livingston and Steuben c ounties in New York as golden nematode ( GN ) regulated are as . Specificall y, this action removed 262,118 acres in Livingston County and 729 acres in Steuben County from the GN quarantined areas listed in 7 CFR §301.85. Areas in Li vingston County have been regulated since the earl y 1980s and areas in Steuben County since the 1960s. APHI S and the New York Department of Agriculture and Markets work cooperatively to survey , quarantine, and control GN with the goal to eradicate this pest. GN is a major pest of potato plants and also attacks other crops . It is spread by the transport of cy sts in soil, in particular through the movement of infested soil attached to agricultural products, farming equipment, and other regulated articles. The quarantine negativel y affect s the sales of potatoes and other agricultural comm odities, such as eggplants, tomatoes, onions, beets, carrots, turf grass, so ybeans and wheat. 

### Potential **Impact on Small Entities** Potato farms in Livingston and Steuben c ounties , which numbered 38 in 2007 , are the primary beneficiaries of the lifting of the GN quarantine. Acc ording to the Small Business Administration (SBA) standard, a business engaged in potato production is considered to be a2

small entity

if its annual receipts are not more than $750,000. Average annual sales for New York potato produc ers in 200 7 are estimated to have been about $61,500. 1 Table 1 provides information on the number of potato farms and harvested acres in the two counties , in relation to potato farms and harvested acres in New York and the United States. The 38 farms in L ivingston and Steuben c ounties that harvested potatoes in 2007 represented about 4.4 percent of such farms in New York

. However, they planted about 25 percent of the State’s acres of harvested potatoes. New York farms that harvested potatoes in 2007 represented about 6 percent of such farms in the United States and plant ed about 2 percent of the Nation’s
acres from which potatoes were harvested. This rule will eliminate all costs associated with the GN pest control program, including labeling, inspection , and certification, for entities in the areas in Li vingston and Steuben c ounties that are no longer under quarantine

. Table 1. Number of farms that harvested potatoes and harvested acreages in the United States , in the State of New York, and in the c ounties of Livingston and Steuben, NY Number/ percentage of Farms Number/percentage of

Harvested Acres United States 15,014 1,131,963 State of New York 860 18,911 Livingston County 10 1,082 Steuben County 28 3,626 Livingston and Steuben c ounties 38 4, 708 State of New York as a percentage of the U.S. 6% 2% The sum of the two c ounties as a percentage of the State of New York 4.4% 25% Source: 2007 census of Agriculture. The rule will also benefit agricultural enterprises other than potato growers in the deregulated areas in the two c ounties

. These two c ounties also produce soybeans, eggplant s, and tomatoes . Certain non

- agricultural entities will benefit from the rule as well. They include

1 National Agricultural Statistics Service (NASS).3

businesses that use earth

- moving equipment and might inadverterl y move infested soil out of the quarantined area, such as construction firms and entities that install and maintain pipelines. They will not need to continue to comply with the GN quarantine regulations. A benefit of the rule for potato growers i n the deregulated areas may be improved export opportunities. Potato exports from New York may be constrained because of the GN quarantine, as suggested b y the value of those exports relative to the value of potato exports from a State unaffected b y GN, s uch as North Carolina. As shown in table 2, these two States have similar numbers of potato farms and acres harvested, but while the value of potato production in New York was over three times the value of North Carolina’s potato production in 2007, the v alue of potato exports by

New York was less than one

- fourth that of North Carolina. Recognizing that various factors influence States’ export levels, the GN quarantine may play a role in constraining that State’s potato exports. Producers in the deregulated areas in the two c ounties will be relieved of GN

- related export restrictions imposed by other countries. Table 2. Potato farms, acreage, production, and exports for New York and North Carolina , 2007 State Potato

Farms Potato Harvested

Acres Potato

P roduction Potato Exports Export Rank by State Number Value (thousand dollars ) New York 860 18,911 $68,400 $754 13 North Carolina 1,123 14,760 $22,545 $3,616 10 Source: 2007 Census of Agriculture. The rule will have positive economic impacts , although the number of farms affected and their share of the Nation’s potato industry are small. Under these circumstances, the Administrator of the Animal and Plant Health Inspection Service has determined that this action will not have a significant eco nomic impact on a substantial number of small entities.